The joint publication linked below is for information purposes only and is not mandatory or prescribed for RICS members and/or regulated firms. Please refer to RICS Red Book Global Standards ESG requirements also).

The Royal Institution of Chartered Surveyors (RICS), American Society of Appraisers (ASA), Chartered Business Valuators Institute (CBV Institute) and Institute of Valuers and Appraisers, Singapore (IVAS) have jointly released a publication to support business valuation professionals in gathering Environmental, Social, and Governance (ESG) information during the valuation process.

This publication is a response to the growing demand for business valuation professionals to consider ESG-related risks and opportunities that can significantly impact a company’s value. It is particularly timely as businesses globally are preparing to comply with new sustainability reporting standards and requirements, such as the IFRS Sustainability Disclosure Standards (IFRS S1 and S2), European Sustainability Reporting Standards (EU ESRS), and US SEC climate-related disclosure requirements.

Developed with the support of the International Valuation Standards Council (IVSC), the publication references and builds upon the ESG-related considerations included in the International Valuation Standards (IVS) and RICS Red Book Global Standards, effective from 31 January 2025.

The joint publication aims to assist business valuation professionals in their assessments of risks and opportunities, and in gathering relevant ESG information from companies to enhance the robustness and quality of valuations. This collaborative document marks the first joint publication between the Valuation Professional Organisations (VPOs) quoted below:

RICS - Royal Institution of Chartered Surveyors

‘As global markets increasingly recognise the significance of ESG risks and opportunities, valuation professionals must be equipped to reflect these considerations in their analysis. This joint guidance offers practical tools to integrate ESG insights into business valuations, supporting consistency, transparency, and alignment with the International Valuation Standards. RICS is proud to contribute to this collaborative effort, helping valuers deliver assessments that are both rigorous and forward-looking.’

- Mr Ben Elder, Global Head of Valuation, Royal Institution of Chartered Surveyors (BA BSc FRICS ACIArb)

ASA – American Society of Appraisers

“This guidance marks a significant step forward in addressing the relevance of Environmental, Social, and Governance (ESG) considerations in today’s business landscape. By offering practical tools and clear direction, it empowers valuation professionals to produce valuations that reflect both evolving regulatory expectations and the realities and complexities of modern corporate reporting. Building upon the foundation of International Valuation Standards (IVS 2025), this document equips practitioners to thoughtfully and seamlessly incorporate ESG factors into their analyses, thereby ensuring their valuations are thorough, reliable and aligned with the expectations of diverse stakeholders”.

- Mr. Guillermo Ortiz de Zarate, Chief Executive Officer, American Society of Appraisers

CBV – Chartered Business Valuators Institute

“Understanding the business is fundamental to any robust valuation. Sustainability-related information, when material, offers valuable insight into the key drivers of value. This guidance supports valuation professionals in identifying and assessing ESG factors that may impact enterprise value. It builds on the requirements set out in the International Valuation Standards, helping professionals ask the right questions to deepen their understanding of the businesses they’re valuing.”

- Dr Christine Sawchuk, President & CEO, Chartered Business Valuators Institute (MEd, EdD, CPA, CA, CBV)

IVAS - Institute of Valuers and Appraisers Singapore

“This timely guidance assists business valuation professionals in navigating the increasing importance of ESG factors in corporate value and investment decisions. With evolving regulatory and corporate reporting requirements on the horizon, this document will empower professionals to produce more robust valuations by thoughtfully considering ESG factors and leveraging new disclosures. The guidance expands upon the International Valuation Standards (IVS 2025) requirements, enabling a pragmatic approach to seeking and analysing ESG-related information for the benefit of all stakeholders.”

- Mr Lie Kok Keong, Council Chairperson, Institute of Valuers and Appraisers, Singapore (CVA, CA)

If you require any further information please contact Lin Tan, Market Development Manager (SEA), email: ltan@rics.org

The joint publication linked below is for informational purposes only and is not mandatory or prescribed for RICS members and/or regulated firms.

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